Sales and Distribution Case Study

Sony India’s Retailing Strategies

OR

Abstract:
Sony, which was ranked first among consumer electronic brands in the world, was struggling to become the leading brand in India. It faced tough competition from Indian rivals like Videocon and Onida, and multinationals like LG, Samsung and Philips. To emphasize its brand name and image, Sony India introduced ‘lifestyle concepts’ by launching spacious and aesthetically designed ‘Sony World’ stores. In these stores, Sony displayed its entire product range in a single showroom and targeted high-end customers in urban areas. Despite promoting its products through advertisements which amounted to 4-5% of the company’s annual turnover, it was only second in market share in its different product segments. Sony introduced four different retail formats in order to differentiate their products, reinforce their brand and serve different customer segments. It began retuning its retail format in 2006, in order to reach the youth and the middle-class. To do so, the stores were launched under three brand names – Sony Digital Kiosks, Sony Walkman and Sony Ericsson. As youth were more attracted towards small format stores in shopping malls, the company hoped to find young consumers visiting their showrooms. The case discusses whether the changes in retail strategy were only enough for becoming the brand no.1 in India.

Pedagogical Objectives:

• Booming consumer electronics retail in India
• Marketing and Branding strategies of Sony in India
• Retail formats of Sony in India.

Keywords : Akio Morita; Sony Walkman; Sony World; Sony Proshop Sony Exclusive; Sony Ericsson; Retailing; Samsung; LG; retail kiosks; Competitive Strategies Case Study; differentiated retailing; Multi-brand outlet; discount stores; dealer network

Contents:

• Sony -The Beginning
• Sony in India
• Sony's Marketing Strategies
• Challenges Ahead